07-09-2024 WS City Council AgendaJO IN T C O U N C IL AN D PL AN N IN G C O MMISSIO N W O R K SESSIO N
R IC H F IE L D MU N IC IPAL C E N TE R, B AR TH O LO ME W R O O M
JU LY 9, 2024
5:45 P M
C all to order
1.D iscussion of potential C annabis Regulations.
A djournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96
hours in advance to the City Clerk at 612-861-9739.
AGENDA SECTION:Work Session Items
AGENDA ITEM #1.
STAFF RE P ORT NO. 19
WORK SESSION
7/9/2024
RE P O RT P RE PA RE D B Y: S am C rosby, P lanner II
D E PA RTME NT D IRE C TO R RE V IE W: Melissa P oehlman, C ommunity D evelopment D irector
7/1/2024
O THE R D E PA RTM E NT RE V IE W:
C ITY MA NA G E R RE V IE W: K atie Rodriguez, C ity Manager
7/1/2024
I T E M F O R WO RK S E S S IO N:
Discussion of potential Cannabis Regulations.
E X E C UT IV E S UM M ARY:
Adult use cannabis was legalized by the State Legislature in 2023, with amendments to the Statutes made in
2024. These Statutes establish the Office of C annabis Management (OC M), and provide the framework for
this extensive new industry. Local governments cannot prohibit the operation of cannabis businesses, but can
limit the time, place and manner of those businesses. Staff has drafted recommendations based on the
feedback gathered during the Council work session in J uly of 2023. W e are now looking for further feedback
on the following staff recommendations: capping the number of retail locations, location of various
business types by zoning district and buffers, distance separation requirements, hours of
operation, accessory uses, home occupations, signage and fees.
D IRE C T I O N NE E D E D:
Provide feedback on the staff recommendations listed in the policies section, below.
B AC K G RO UND INF O RM AT I O N:
A .H IS TOR IC AL C ON T E X T
Medical Marijuana D ispensaries are currently allowed by C UP in the C -2 zoning district only. They must
be at least 1,000 feet from a public or private school, 1,000 feet from another medical marijuana
dispensary, and 250 feet from residential property. A s such, there are few available locations within the
C ity, see attached Map.
A dult use cannabis was legalized the S tate L egislature in 2023, and was amended to, among many
other things, allow municipal dispensaries, in 2024. The OC M is currently in the process of drafting
administrative rules, therefore, some details may change slightly between now and when staff prepares
a draft ordinance for formal consideration.
B .E QU ITAB L E OR S T R AT E GIC C ON S ID E R AT ION S OR IMPAC T S
E quity: P er the O C M website, the new law establishes several grant programs that will provide funding
for technical assistance, financial capital, and workforce training for Minnesota's new legal cannabis
industry with a focus on social equity. A pplicants who meet qualifications for social equity status will be
eligible for a lottery system to receive license preapproval and be able to finalize business operations in
anticipation of market launch after the adoption of rules. A s the process continues to be clarified, the city
will need to be intentional about any unintended consequences that could arise.
C .P OL IC IE S (resolutions, ordinances, regulations, statutes, exc):
Retail Cap: Using the M N state demographer’s numbers for 2022, of 36,543 residents, one retail
location per 12,500 residents (or fraction thereof) equates to three locations. A t last year’s work session,
the C ouncil indicated that three or four would be a good start. S ince the C ity may add a municipal
dispensary in the future, staff recommends capping at 3 stores initially and evaluate increasing as part of
the decision to open a municipal dispensary.
Municipal Dispensary: If desired, a municipal dispensary does not count towards 1/12,500
requirement. A municipal dispensary may be considered in the future, staff are still researching this
option.
Definitions Section: There are 13 new business types to incorporate into the zoning code, definitions
attached:
C annabis microbusiness C annabis event organizer
C annabis mezzo business C annabis delivery service
C annabis cultivator L ower-potency hemp edible manufacturer
C annabis manufacturer L ower-potency hemp edible retailer
C annabis retailer Medical cannabis combination business
C annabis wholesaler C annabis transporter
C annabis testing facility
F or brevity purposes, staff is recommending that all business types be defined as “as defined in S tate
S tatute 342.01."
Cannabis retailer (including medical cannabis), Cannabis event organizer, and low potency hemp
edible retailers: S taff recommends allowing these three business types in the C -2 (General B usiness),
M U-C (Mixed Use C ommunity), MU-R (Mixed Use Regional) and P UD districts (P C -2 & P MU), by
right, subject to underlying code district regulations and the following stipulations:
A long arterial roads only
B uffers:
1,000’ buffer from schools;
500’ buffer around day cares
A t the work session in July of last year, this was not preferred because day cares
come and go so frequently, the map would constantly be changing, creating a
moving target.
500’ buffer from residential treatment facilities;
500’ buffer from park amenities used by minors;
The current map buffers are drawn to exclude any parcel it touches, even if only slightly. In
other words, the parcel does not need to be completely within the buffer to be
disqualified, as currently drafted. S ee potential retailer locations map.
S taff is recommending the maximums allowed by the new law. F or discussion purposes,
staff has also included a map that shows half the buffer, and no buffer. Even with the
maximum buffer, many potential locations remain.
One mile distance separation between retailers: This would likely result in the “leapfrogging” of
businesses to every-other arterial roadway. S o if a dispensary was located on P enn & 66th, the
next one to the east would be Lyndale and 66th.The next one to the east of that would be P ortland
and 66th, then C edar and 66th. S taff believes that the desire to disperse the business throughout
the community so as to not disproportionately impact one area or neighborhood within the C ity
more than another is a substantive enough rationale for a separation requirement.
L imit hours of operation: D uring the work session bar hours were suggested, however, the C ity
does not regulate bars outside of the “not between 2 am and 8 am” rules of the state, which also
already apply to C annabis sales. The C ity is allowed to limit the hours to a minimum of between
10 am and 9 pm, seven days a week. S taff recommends we follow our municipal liquor store
hours:
S unday 11am - 6pm
Monday – Thursday 10am – 8pm
F riday & S aturday 10am – 10pm
S hared E ntrances: The C ity of Minneapolis is considering restricting dispensaries from having a
shared common entrance with a liquor store, a tobacco products shop, a food and beverage use
and a drugstore or pharmacy. S taff thought this may be worth consideration as well. This item is
not a staff recommendation, but was provided for discussion purposes.
All other business types:
S taff recommends that all other use types be listed as a C onditional Use in the I (Industrial) district,
subject to considerations such as:
o Must be completely indoor
o Odor & ventilation
o S ecurity
o L ight pollution mitigation
o Wastewater management
o S olid waste management
o E nergy & Water use
Accessory Uses: S taff recommends that all cannabis business be principal uses only, and should not
be allowed as an accessory use.
Home Occupations: The C ity already specifically prohibits retail sales as a home occupation, but to be
thorough, staff recommends adding, to S ection 509.19, S ubd.11, “specific activities prohibited,”
cannabis businesses, medical cannabis businesses, and low-potency hemp edible businesses. A
cannabis event organizer would be allowed as a home occupation, as it is considered an office use.
Signage: The legislation restricts all outdoor advertisements except for up to two fixed outdoor signs on
the exterior of the building (ie: a wall sign) or property (i.e: a freestanding sign) of the cannabis business
or hemp business. S taff proposes to reference in the S ign C ode, under C ommercial & Industrial
districts, (S ection 549.23, S ubd.2,f).“C annabis business shall also comply with limitations imposed by
S tate S tatute 342.01.”
Fees: The state statute allow cities to charge a “registration” fee up to a specified amount. We
recommend that the C ity charge the maximum allowed fees L P HE /C annabis registrations to offset the
expense of staff time and mandated compliance inspections.
D .C R IT IC AL T IMIN G IS S U E S:
Ordinance must be adopted by the end of the year, as C annabis sales are expected to begin in 2025.
Staff anticipates a draft ordinance for public hearing by the Planning Commission in
September and first reading in October.
E .F IN AN C IAL IMPAC T:
There is no financial impact related to zoning decisions for cannabis, however staff recommends the
C ouncil approve the charging of fees for L P HE /C annabis registrations to offset the expense of staff
time and mandated compliance inspections.
F.L E GAL C ON S ID E R AT ION:
The C ity A ttorney has been involved in C ouncil work sessions and staff conversations to date, and will
continue to counsel the city accordingly.
ALTE R N AT IV E(S):
None.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
None
AT TAC H ME N T S:
D escription Type
L ist of C annabis B usiness D efinitions B ackup Material
Medical Marijuana Map, 2015 B ackup Material
D raft E ligible C annabis Retail L ocations Map - F ull B uffer B ackup Material
D raft E ligible C annabis Retail L ocations Map - Half B uffer B ackup Material
D raft E ligible C annabis Retail L ocations Map - No B uffer B ackup Material
Pg. 1 of 3
Cannabis Business Definitions
From: Cannabis Planning & Zoning for Minnesota Counties - April 2024 www.mncounties.org
Cannabis microbusiness. Under Article 1, Section 28, a cannabis microbusiness may grow cannabis plants,
make cannabis concentrate, make hemp concentrate, manufacture artificially derived cannabinoids,
manufacture adult-use cannabis products, lower-potency hemp edibles, and hemp derived consumer products
for public consumption, purchase hemp or hemp concentrate parts, package and label cannabis and hemp
products, and sell cannabis plants and seedlings, adult-use cannabis flower, adult-use cannabis products, lower-
potency hemp products, and hemp-derived consumer products.
A cannabis microbusiness that cultivates cannabis at an indoor facility may cultivate up to 5,000 square feet of
plant canopy. A cannabis microbusiness that cultivates cannabis at an outdoor location may cultivate up to
one-half acre of mature, flowering plants unless the office increases that limit. A cannabis microbusiness with
the appropriate endorsement may operate one retail location.
A cannabis microbusiness may permit on-site consumption of edible cannabis products and lower-potency
hemp edibles on a portion of its premises. Cannabis microbusiness must ensure that the display and
consumption of any edible product or lower-potency hemp edible is not visible from outside the licensed
premises of the business.
Cannabis mezzo business. Under Article 1, Section 29, a cannabis mezzo business may grow cannabis from
seed or immature plant for cannabis products or medical cannabis flower, make cannabis and hemp
concentrate, manufacture adult-use cannabis products, lower-potency hemp edibles, and hemp-derived
consumer products for public consumption, process medical cannabinoid products, sell immature cannabis
plants and seedlings, and purchase cannabis concentrate, hemp concentrate, and synthetically derived
cannabinoids from another cannabis business.
A cannabis mezzo business that cultivates cannabis at an indoor facility may cultivate up to 15,000 square feet
of plant canopy. A cannabis mezzo business that cultivates cannabis at an outdoor location may cultivate up to
one acre of mature, flowering plants unless the office increases the limit.
Cannabis cultivator. Under Article 1, Section 30, a cannabis cultivator can grow cannabis plants within the
approved amount of space from seed to immature plant to mature plant, harvest cannabis flower, package and
label immature cannabis plants and seedlings and cannabis flower, and transport cannabis flower to cannabis
manufacturers.
Cannabis manufacturer. Under Article 1, Section 31, a cannabis manufacturer may purchase cannabis
flower, cannabis products hemp plant parts, hemp concentrate, and artificially derived cannabinoids from a
cannabis business, purchase hemp plants and hemp concentrates, make cannabis hemp concentrate,
manufacture artificially derived cannabinoids, manufacture adult-use cannabis products, lower-potency hemp
edibles, and hemp derived consumer products, and sell cannabis concentrate, hemp concentrate, artificially
derived cannabinoids, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products
to other cannabis businesses.
Cannabis retailer. Under Article 1, Section 31, a cannabis retailer may purchase immature cannabis plants
and seedlings, cannabis flower, cannabis products, and lower-potency hemp products, from cannabis
businesses, and sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use cannabis
products, lower-potency hemp edibles, hemp-derived consumer products, and other products authorized by law
to customers.
Cannabis wholesaler. Under Article 1, Section 33, a cannabis wholesaler may purchase immature cannabis
plants and seedlings, cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived
consumer products from cannabis businesses, and purchase hemp plant parts and hemp concentrates. Cannabis
wholesalers may sell immature cannabis plants and seedlings, cannabis flower, cannabis products, lower-
potency hemp edibles, and hemp-derived consumer products to cannabis microbusinesses, cannabis mezzo
businesses, cannabis manufacturers, and cannabis retailers, sell lower-potency hemp edibles to lower-potency-
Pg. 2 of 3
hemp edible retailers, and import hemp-derived consumer products and lower-potency hemp edibles that
contain hemp concentrate or artificially derived cannabinoids.
Cannabis transporter. Under Article 1, Section 35, a cannabis transporter may transport immature cannabis
plants and seedlings, cannabis flower, cannabis products, artificially derived cannabinoids, hemp plant parts,
hemp concentrate, lower-potency hemp edibles, and hemp-derived consumer products from cannabis
microbusinesses, cannabis mezzo businesses, cannabis cultivators, cannabis manufacturers, cannabis
wholesalers, lower-potency hemp edible manufacturers, medical cannabis retailers, medical cannabis
processors, and industrial hemp growers to cannabis microbusinesses, cannabis mezzo businesses, cannabis
manufacturers, cannabis testing facilities, cannabis wholesalers, cannabis retailers, lower-potency hemp edible
retailers, medical cannabis processors, medical cannabis retailers, and medical cannabis combination
businesses and perform other actions approved by the office.
Cannabis testing facility. Under Article 1, Section 37, a cannabis testing facility may obtain and test
immature cannabis plants and seedlings, cannabis flower, cannabis products, hemp plant parts, hemp
concentrate, artificially derived cannabinoids, lower-potency hemp edibles, and hemp-derived consumer
products from cannabis microbusinesses, cannabis mezzo businesses, cannabis cultivators, cannabis
manufacturers, cannabis wholesalers, lower-potency hemp edible manufacturers, medical cannabis cultivators,
medical cannabis processors, medical cannabis combination businesses, and industrial hemp growers.
Cannabis event organizer. Under Article 1, Section 39, a cannabis event organizer may organize a temporary
cannabis event lasting no more than four days. A cannabis event organizer must receive local approval,
including obtaining any necessary permits or licenses issue by a local unit of government before holding a
cannabis event. If approved by the local unit of government, a cannabis event may designate an area for
consumption of adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, hemp-
derived consumer products, or any combination of those items.
Cannabis delivery service Under Article 1, Section 41, a cannabis delivery service may purchase cannabis
flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products from licensed
cannabis microbusinesses with a retail endorsement, cannabis mezzo businesses with a retail endorsement,
cannabis retailers, medical cannabis retailers, and medical cannabis combination businesses; transport and
deliver cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumable
products to customers; and perform other actions approved by the office.
Prior to completing a delivery, a cannabis delivery service must verify that the customer is at least 21 years of
age or is enrolled in the registry program. The office shall establish limits on the amount of cannabis and hemp
products that a cannabis delivery service may transport. Cannabis and hemp must be stored in a locked, sage,
and secure storage compartment that is part of the cannabis delivery vehicle.
Medical cannabis combination business. Under Article 1, Section 52, a medical cannabis combination
business may grow cannabis plants from seed to immature plant to mature plant and harvest adult-use cannabis
flower and medical cannabis flower from a mature plant, make cannabis concentrate, make cannabis and hemp
concentrate, manufacture artificially derived cannabinoids, manufacture medical cannabinoid products,
package and label medical cannabis and medical cannabinoid products for sale to medical cannabis processors,
medical cannabis retailers, other medical cannabis combination businesses, and patients enrolled in the registry
program, registered caregivers, and parents, legal guardians, and spouses of an enrolled patient.
Lower-potency hemp edible manufacturer. Under Article 1, Section 45, a lower-potency hemp edible
manufacturer may purchase hemp plant parts, hemp concentrate, and artificially derived cannabinoids from
cannabis microbusiness, cannabis mezzo businesses, cannabis manufacturers, cannabis wholesalers, and lower-
potency edible hemp edible manufacturers. Lower-potency hemp edible manufacturers may also purchase
hemp parts and hemp concentrate, make hemp concentrate, manufacture artificially derived cannabinoids,
manufacture lower-potency hemp edibles for public consumption, package and label lower potency hemp
edibles, and sell hemp concentrate, artificially derived cannabinoids, and lower-potency hemp edibles to other
cannabis businesses and hemp businesses.
Pg. 3 of 3
Lower-potency hemp edible retailer. Under Article 1, Section 46, a lower-potency hemp edible retailer may
only sell lower-potency hemp edibles to individuals who are at least 21 years of age. A lower-potency hemp
edible retailer may sell lower-potency hemp edibles that are obtained from a licensed Minnesota cannabis
microbusiness, cannabis mezzo business, cannabis manufacturer, cannabis wholesaler, or lower-potency hemp
edible manufacturer, and meet all applicable packaging and labeling requirements.
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±Possible Medical Marijuana Distribution Sites
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Date: 2 /9/2015